The S&P 500’s strength, mostly from the trillion market capitalization firms, boosted small and medium-sized firms. Investors may look at three stocks that area for upside.
Free stock trading site Robinhood is poised to take Coinbase’s (COIN) market share in the crypto trading business. Coinbase is fighting an SEC lawsuit. This could increase regulatory costs, which it will pass on to customers. Furthermore, crypto volumes will weaken as Coinbase raises its fees on small-sized trades. Robinhood may grow transactions and fees as a result.
HOOD and COIN stock trade at an inverse to each other. As Coinbase stock falls, Robinhood shares rise.
Farfetch (FTCH) is a luxury brand seller online. Trading volume surged last month after the company posted strong quarterly sales of $556.39 million. Though it lost 16 cents in EPS (non-GAAP), it is on a path to profitability. Farfetch will thrive when inflation falls. This will decrease pressure on its profit margins.
FTCH is a good upside bet on the economy growing. When conditions improve, Farfetch stock will rise.
DraftKings, an online sports betting service, doubled from last year’s lows. Its offer to buy PointsBet for $195 million strengthens its market position. This increases its positive adjusted EBITDA in 2024. Furthermore, its mobile sports betting technology roadmap accelerates.
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